(MENAFN- GlobeNewsWire - Nasdaq) Key growth drivers include improvements in battery energy density, faster charging capabilities, and enhanced safety and performance features. Front-wheel drive EVs are expected to see significant growth due to affordability, while 400V electrical architecture is poised to dominate the market. Europe is preparing for substantial expansion, driven by stringent zero-emission targets and increasing consumer adoption. Leading manufacturers like Tesla, Volkswagen, and Hyundai are expanding their portfolios to capture market share, leveraging existing ICE platforms to facilitate the transition to EVs. The market is characterized by strategic investments in charging infrastructure, vehicle connectivity, and enhanced performance technologies.Dublin, Nov. 21, 2025 (GLOBE NEWSWIRE) -- The "Electric Vehicle Market by Vehicle Type, Propulsion, Vehicle Connectivity, Component, End Use, P-EV market by EV Architecture, Top Speed, Drive Type, Body Type, H-EV market by Configuration, MHEV market by Topology, and Region - Global Forecast 2035" has been added to ResearchAndMarkets's offering.
The plug-in electric vehicle market is projected to expand from USD 698.63 billion in 2025 to USD 1.18 trillion in 2035, registering a CAGR of 5.5%. Concurrently, the hybrid electric vehicle market is expected to grow from USD 446.87 billion to USD 667.75 billion, at a CAGR of 4.1%.
This growth is fueled by increasing demand for battery-powered mobility across both passenger and commercial sectors, propelled by enhancements in battery energy density, faster charging capabilities, and improved vehicle safety and performance.
Government initiatives, including Europe's 2035 zero-emission targets and favorable regulations in Germany and Norway, are spurring adoption even as subsidies in China and the US wane. Expansion of charging infrastructure and investments in powertrain efficiency are translating into longer ranges and reduced ownership costs. Upgraded thermal management systems and software-driven energy optimization are being integrated by OEMs to enhance efficiency, safety, and user-friendliness, underpinning sustained growth throughout the forecast period.
Major players in the electric vehicle market include BYD Company Ltd. (China), Tesla (US), Zhejiang Geely Holding Group (China), Volkswagen Group (Germany), and General Motors (US). These companies continuously expand their portfolios to enhance their market presence.
Front-wheel drive type is expected to have the largest growth in the electric vehicle market during the forecast period
The front-wheel drive (FWD) segment's growth is attributed to its cost efficiency, viability for urban and high-traffic conditions, and affordability. Simplified and cheaper production compared to RWD or AWD systems aligns with budget-conscious consumer expectations. FWD's lighter drivetrain improves energy efficiency and range while enhancing traction in adverse weather, making it a preferred choice globally.
Popular FWD EV models, including the Nissan Leaf, Hyundai Kona Electric, and Toyota bZ4X, have gained market acceptance for their practical benefits. New launches continue to bolster this segment, exemplified by Hyundai's Kona Electric FWD variant in Thailand, featuring a 450 km range. Despite notable interest in RWD and AWD for performance models, FWD is anticipated to dominate due to its efficiency and economy for everyday use.
400V architecture is expected to hold the largest share in the electric vehicle market during the forecast period
The dominance of 400V systems in the EV market is due to their widespread adoption, cost advantages, and compatibility with existing infrastructure. Mid-range EVs leverage these systems due to their balance of performance and affordability. Models like the Hyundai Kona Electric, Kia Niro EV, and Volkswagen ID.4 exemplify this trend, with innovative launches like the Kia EV4 highlighting further advancements.
Nissan's new LEAF, debuting in September 2025, exemplifies continued investment in 400V platforms due to their mature supply chain and component availability, ensuring cost-effective production. While 800V systems are emerging, primarily in high-performance vehicles, the proven reliability of 400V systems is expected to maintain their market prevalence.
Europe set to witness a significant growth in the electric vehicle market during the forecast period
Europe's electric vehicle market is set for substantial expansion, driven by stringent regulatory mandates and robust OEM commitments. The EU's zero-emission targets for 2035 and advancing CO2 standards are key drivers of this transition. Among European automakers, Volkswagen, BMW, and Stellantis are heavily investing in EV production and infrastructure, meeting growing consumer demands with models like the VW ID.4 and BMW iX.
In early 2025, Europe's BEV registrations increased by 34% year-over-year, now accounting for 15.6% of the market share. Germany, Belgium, and the Netherlands lead this growth, supported by infrastructure investments and incentives. The introduction of vehicles like Hongqi's EHS5 further illustrates the momentum driving regional expansion.
The report provides insights into the following areas:
Analysis of key drivers, restraints, opportunities, and challenges. Product innovation with insights on upcoming technologies and new launches. Market development, highlighting lucrative regions and growth potential. Market diversification with detailed information on untapped markets and recent developments. Competitive assessment of market leaders like BYD Company Ltd., Tesla, and others.
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